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Bankruptcy And Your Income – Essential Facts

  • The aim of bankruptcy is to protect your income to ensure your essential needs can be met.
  • The amount of income you are entitled to keep depends on how many dependants you have.
  • Income you can retain per annum in after tax dollars is:
Threshold Amount
No Dependants $55,446.30
1 Dependants $65,426.63
2 Dependants $70,416.80
3 Dependants $73,189.12
4 Dependants $74,298.04
Over 4 Dependants $75,406.97
  • Amounts you earn over your ‘Threshold Amount’ in after tax dollars – you keep half and the other half is paid to your bankrupt estate.
  • The ‘Threshold Amount’ is adjusted twice a year, 20 March and 20 September.
  • A dependant is a person who resides with you that does not earn more than $3,452 per annum before tax (no tax payable at this level of income).
  • A husband and wife can each claim all their children as dependants.
  • The ‘Threshold Amount’ is increased by amounts paid through the Child Support Agency for the support of children from a previous relationship.
  • A separated couple can each claim their children as dependants if they have joint custody and they each have a bedroom allocated for the child.

Further and more detailed information on income during bankruptcy can be obtained from this website or by calling Alan Nicholls on 1300 060 122


Alan Nicholls Bankruptcy Advice

Alan Nicholls specialises in assisting those in financial difficulty through the process of understanding & filing for bankruptcy. For more details see the contact information below: